Indigo Paints Ltd

Overview

• Standalone BRSR for FY2025-26 covering Indigo Paints' paint manufacturing.
• 6 plants and 61 locations nationwide across 36 states/UTs.
• Exports account for 0.18% of turnover; turnover is entirely from paints.
• Reporting boundary is standalone and forms part of the annual report.

Key ESG Risks & Opportunities

• Water is a primary raw material; mitigated via rainwater harvesting and groundwater recharge.
• Energy risk and renewables opportunity; solar capacity installed at Pune and Kochi.
• People/community opportunities through CSR programs for painters and local uplift.
• Cybersecurity risk due to ERP; mitigated by daily backups and disaster recovery planning.
• Governance oversight with board and ESG committee to monitor sustainability.
• Regulatory risk: INR 19.26 crore GST credit demand under appeal.
• EPR/waste recycling activities; over 4000 MT plastic recycled.

Governance & Policy Highlights

• Board-led BRSR responsibility; Chairperson-MD oversees ESG; CFO implements.
• ESG committee chaired by MD reviews sustainability initiatives.
• Anti-corruption policy in place and accessible on company site.
• Policies extended to value chain with board approval.
• Policies align with SEBI LODR and NGRBC; board-approved.
• No external assurance obtained for BRSR Core.

Social Responsibility & Workforce

• Workforce: 1,137 permanent employees; 1,352 total workers.
• Gender representation: board 8 members with 12.5% female; KMPs 50% female.
• Health/safety training coverage: 96.66% of employees; skill upgradation 100%.
• Whistleblower policy and open-door grievance mechanisms for employees/workers.
• CSR initiatives include Educare, healthcare, painter health, Seva Utsav, and skill programs.
• Wages: female share 2.44% of total wages.
• POSH committee; no POSH complaints in FY2025-26.
• Accessibility for differently abled; equal opportunity policy in place.

Environmental Performance

• Total energy 28,570 GJ; renewable share 518 GJ; solar 20 kW HQ, 330 kW Kochi.
• Scope 1: 85.83 tCO2e; Scope 2: 5,333 tCO2e; intensity 4.07 tCO2e per H crore.
• Scope 3: 121,450.68 tCO2e; intensity 0.00000913 tCO2e per turnover.
• Water withdrawal 64,730 kL; ZLD across all facilities; water reused in-process.
• Total waste 1,722 MT; 1,266 MT recycled; 380 MT reused; 33 MT landfilled.
• 4000 MT plastic waste recycled under EPR.

Stakeholder Engagement & Complaints

• Stakeholders: employees, local communities, regulators, customers, shareholders, suppliers.
• Engagement channels: email, community meetings; monthly for employees; ongoing/quarterly for others.
• Community helpline established to receive feedback and address grievances.
• Customers filed 27 complaints in FY2025-26; 0 pending unresolved.
• Shareholders filed 608 requests in FY2025-26; resolved in respective quarters.
• Whistleblower policy protects reporting; POSH committee maintains workplace safety.

Other Notable Metrics

• Sustainable sourcing: 46.6% direct MSMEs; 89.2% inputs sourced domestically.
• Related-party transactions: purchases from related parties 0%; sales to related parties 0.87%.
• Data privacy: policy exists; no data breaches.
• Trade associations: Indian Paint Association; Indian Institute of Interior Designers.
• RPT-focused governance and energy/water intensity metrics expanded; external assurance not obtained.

Dividend, governance & AGM updates

• Final dividend ₹5 per share proposed.
• Record date 04 Sep 2026.
• AGM to be conducted via VC/OAVM.
• Remote e-voting from Sep 9–11, 2026.
• Dividend payout by Oct 12, 2026.
• Dividend payout ratio 16.39%.
• Narayanankutty Venugopal reappointed as Executive Director, 2025–2030.
• Venugopal chairs Stakeholders Relationship and Risk Management Committees.
• Cost auditor remuneration ratified for 2026–27; cap ₹80,000 plus taxes.
• PAN and KYC updates advised; MCA/SEBI compliance noted.

AGM Details

• AGM on 12 Sept 2026 at 11:00 IST via VC/OAVM.
• Mode: VC/OAVM; deemed venue at registered office.
• Record date for dividend/voting: 4 Sept 2026.
• Book closure: 5–12 Sept 2026.

Resolutions to be Voted

• Adoption of standalone and consolidated financial statements for year ended 31 March 2026.
• Declaration of final dividend of Rs 5.00 per share.
• Appointment/reelection of Narayanankutty Venugopal as Executive Director for 2025–2030.
• Ratification of cost auditor remuneration for 2026-27: Rs 80,000 plus taxes.

Dividend Plan

• Final dividend of Rs 5.00 per share; payable by Oct 12, 2026 upon approval.

Director Changes

• Executive Director Venugopal to be appointed for term until 31 May 2030.
• Venugopal attended 5 of 5 board meetings; age 77.
• Remuneration last drawn: Rs 180 Lakhs plus ESOP.

Auditor Appointments

• Cost Auditor remuneration for 2026-27 ratified at Rs 80,000 plus taxes.

Voting Results

• Voting results not disclosed in filing; to be announced post-AGM.

Transaction details

• Target: Indigo Paints Limited.
• Disclosing Party: HDFC Mutual Fund schemes; not promoter group.
• Transaction Type: Acquisition of 13,51,199 shares (2.831% of total share capital) via open market.
• Pre-transaction holding: 24,13,050 shares, 5.055% voting rights.
• Post-transaction holding: 37,64,249 shares, 7.886% voting rights.
• Date of transaction: August 14, 2026.
• Capital before: Rs 47,73,26,370 comprising 4,77,32,637 equity shares.
• Capital after: Rs 47,73,26,370 comprising 4,77,32,637 equity shares.

Transaction summary

• Target Company: Indigo Paints Limited.
• Disclosing Party: Nippon India Mutual Fund (through Nippon Life India Trustee Limited A/c) — not promoter.
• Transaction Type: Sale of shares carrying voting rights.
• Pre-Transaction Holding: 40,60,251 shares, 8.5062% voting rights.
• Transaction Details: Sold 11,55,722 shares (2.4212%), open market.
• Post-Transaction Holding: 29,04,529 shares, 6.0850%.
• Date Range: September 10, 2024 to August 14, 2026.
• Share Capital Context: Pre/post/diluted Rs 47,73,26,370.
• Mode of transaction: Open Market.

Meeting Details

• Date and time: 14 August 2026 at 11:00 IST.
• Type/Mode: earnings call, digital/virtual.
• Event: Indigo Paints earnings call.
• Purpose: earnings discussion for quarter ended June 30, 2026.
• Key company participant: Company Secretary & Compliance Officer.
• Recording: audio recording available on the company website.

Business Overview

• Decorative paints maker expanding into construction chemicals via Apple Chemie India.
• Expands into non-decorative segments (construction chemicals, waterproofing) via Apple Chemie.
• Geographic expansion: six plants, 55 depots, ~19,382 active dealers.
• Upcoming Jodhpur plant: trial production by Aug-2026; 90,000 KLPA water-based capacity.
• Apple Chemie stake to 62%; NABL accreditation; margins expected to improve.
• Capex cycle concluded; minimal capex through 2029; cash flow generation on the horizon.
• ESG initiatives include renewable energy, painter-community programs, and education/health support.

Key Operational Highlights

• Standalone Q1 FY27 revenue Rs 350 Cr; 18.7% YoY growth.
• PAT Rs 42.4 Cr; PAT margin 11.8%.
• EBITDA Rs 61.9 Cr; EBITDA margin 17.7%.
• Gross Margin 45.3%; A&P as % of revenue 4.3%.
• Consolidated growth robust but margins pressured by subsidiary headwinds.

Outlook & Strategic Priorities

• Indigo 2.0 focuses on adjacencies and infra exposure via Apple Chemie.
• Upcoming Jodhpur plant; trial production Aug 2026; 90k KLPA capacity.
• Apple Chemie: 62% stake; margins to improve in Q2 FY27.
• Capex discipline: minimal capex through 2029; cash flow generation and shareholder returns.
• Pricing discipline: price increases offset raw material cost spikes.

Risks & Mitigation

• Volatile raw material costs; Indigo implemented timely price increases to protect margins.
• Supply chain disruptions; continue cost control and supplier diversification.

Acquisition details

• Target: Apple Chemie India Private Limited (ACIPL), Indian chemical company; subsidiary of Indigo Paints.
• Size/scale: not disclosed.
• Related party: not specified; acquisition from existing shareholders.
• Industry/sector: chemicals (not disclosed in filing).
• Purpose and rationale: to potentially increase Indigo's stake in ACIPL by 11%, subject to definitive agreements.
• Regulatory approvals: not specified.
• Timeline: not specified.
• Form of consideration: not disclosed.
• Cost/price: not disclosed.
• Shareholding acquired: 11% equity stake.
• Background: ACIPL is a subsidiary; incorporation date and turnover not disclosed.